The accord was reached 85 days into Mr Johnson’s premiership and sees the removal of the backstop and its replacement with a new Northern Ireland Protocol, which will see goods heading into the province and destined for the EU subject to the bloc’s external tariff.
Financial experts were relieved that a ‘no deal’ exit could be averted although Parliament could still vote the deal down in a special Saturday sitting tomorrow.
Chris Cummings, chief executive of the Investment Association, said: “The deal provides welcome certainty to the investment management industry and the millions of savers and investors it serves.
“Now a new deal is on the table, it’s important that politicians on all sides come together in order to avoid the damaging effects of a cliff edge no deal.
“This renegotiated deal provides the welcome certainty our country needs to safeguard the future of many industries including our own and the customers we serve.
“It will also ensure we retain our position as a world-leading centre for investment management which will be critical in the post-Brexit world.”
Huw Evans, director general of the Association of British Insurers, added: “This agreement is a positive sign, but the key test is whether Parliament will vote for it.
“It is important that however we leave the EU, we do so in an orderly way that provides certainty for business, consumers and our world-leading insurance and long-term savings industry.
“Then we can move on to the important question of what a constructive future relationship with the EU looks like, that avoids the UK becoming a permanent rule-taker.”
Nigel Green, CEO and founder of deVere Group, said: “The pound has soared above $1.29 for the first time since May on reports that a Brexit deal has been reached and UK stocks are boosted in a relief rally.
“However, the rally is currently being tempered as it needs to get through the UK and EU parliaments.
“There does seem to be some question marks remaining over the DUP’s support, which is, of course, critical to getting the deal through the House of Commons.
“That said, there does seem to be a growing sense of optimism that it can get approved.”